Once ALR kicks in, the original strategy has nothing to do with the subsequent trades, so it is quite possible to hit 21, 41, or 4000 Zone trades before it hits breakeven (unless, of course, you set a sensible limit to the number of zone trades). Once the ALR sequence has closed, then the original strategy comes back into play.ronkeous » Thu Dec 11, 2014 1:36 pm wrote:Here is an interesting stat that you might want to consider.
Leverage 400:1
0.01 Lots = $0.10 or 10 cents per Pip
30 Pip Zone and 90 Pip Take Profit
Total Margin and Drawdown @ 21 Zone Trades before it exit everything at Break Even is about $6600.00
Just something to consider when assessing potential risk.
I know that most people will argue that their strategy will not encounter this (especially if they are playing breakouts) however I don’t have such a good strategy so I just need to be aware of that and ensure that I am well funded for the hard times.
Happy Trading
Ron
Have fun!
Radar =8^)